California’s $2 billion Last Mile Federal Funding Account Grant Program (FFA) has announced another $207 million in new broadband grants across Amador, Los Angeles, and Solano Counties.

The FFA program, part of a broader $6 billion California “Broadband For All” initiative, is aimed at boosting broadband competition and driving down costs statewide.

According to the state’s announcement, $61 million in new grants were awarded by the California Public Utilities Commission (CPUC) for five Last Mile FFA broadband infrastructure grant projects in Amador and Solano Counties, bringing affordable fiber Internet access to approximately 10,000 Californians.

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The CPUC award details indicate that the grants will be awarded to the Golden State Connect Authority (GSCA) and the City of Vallejo to help bring fiber access to 2,278 unserved locations in Amador and Solano counties.

The City of Vallejo will leverage $3.8 million in state grants to complete four different projects laying predominantly underground fiber, with the city retaining ownership of the finished network and Smart Fiber Networks providing last mile consumer-facing service.

A recent U.S. News And World Report survey of U.S. broadband subscribers shows that Americans are increasingly paying more money for broadband access.

The survey also indicates broad public support for the recently defunded Affordable Connectivity Program (ACP), and other government-backed efforts to cap soaring broadband subscription costs.

The organization surveyed 2,500 adults from the country’s five most populous states; 500 broadband subscribers each in California, Texas, Florida, New York, and Pennsylvania.

Not too surprisingly, the survey found that consumers consistently are paying more for broadband than the advertised price, either thanks to steady rate hikes, or the broad use of often sneaky, hidden fees to jack up the advertised cost of service.

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Most Americans remain trapped under a monopoly or duopoly for next-generation broadband (broadband defined as faster than 100/20 megabits per second, or Mbps) access. This lack of competition results in high prices, slow speeds, spotty access, substandard customer service, and an increased occurrence of net neutrality, privacy, or other anti-consumer violations.

The survey found the average U.S. subscriber bill at sign up is now $81 – up from the $77 average monthly price seen in the outlet’s April 2024 survey report. But the average broadband subscription cost when the bill actually arrives was now $98 per month; up from $89 just six months earlier. For most, $100 broadband access is right around the corner.

As the federal government makes unprecedented investments to expand high-speed access to the Internet, unbeknownst to most outside the broadband industry is that nearly a third of the states in the U.S. have preemption laws in place that either prevent or restrict local municipalities from building and operating publicly-owned, locally-controlled networks.

Currently, there are 16 states across the U.S. (listed below) with these monopoly-protecting, anti-competition preemption laws in place.

These states maintain these laws, despite the fact that wherever municipal broadband networks or other forms of community-owned networks operate, the service they deliver residents and businesses almost always offers faster connection speeds, more reliable service, and lower prices.

In numerous cases, municipal broadband networks are able to provide low-cost or free service to low-income households even in the absence of the now expired federal Affordable Connectivity Program (ACP). And for several years in a row now, municipal networks consistently rank higher in terms of consumer satisfaction and performance in comparison to the big monopoly Internet service providers, as PCMag and Consumer Reports have documented time and time again.

Nevertheless, these preemption laws remain in 16 states, enacted at the behest of Big Cable and Telecom lobbyists, many of whom have ghost written the statutes, in an effort to protect ISP monopolies from competition.

The Infrastructure Law Was Supposed to Move the Preemption Needle But …

Placerville, California will soon be a place with a municipally-owned open-access fiber network as the city of 10,000 looks to provide its residents and businesses with local choice and more affordable broadband service.

The years-long effort was launched after frustration with what the city’s 2021 Broadband Master Plan described as the “equivalent of an ISP (Comcast) Monopoly.”

“Because of this,” the plan noted, “residents and businesses in Placerville are exposed to the common limitations of monopolies” – a high-priced reality that prompted 98 percent of city survey respondents to say “yes” to a municipally-owned network.

Now, three years after that report was published – and thanks to a $20.1 million award from the California Public Utilities Commission (CPUC) Last Mile Federal Funding Account (FFA) grant program – a city that was once nicknamed “Hangtown” is now set to cut the noose of the ISP monopoly.

Montgomery County Maryland has been awarded the “Best Municipal or Public Connectivity Program,” honored as a 2024 Broadband Nation Award winner for its ongoing efforts to expand affordable broadband access and help bridge the digital divide.

Montgomery County has worked extensively for years to connect municipal services and key anchor institutions, but more recently has begun leveraging that infrastructure to expand access to the most vulnerable. The county’s efforts have two key components:

FiberNet is a 650-mile municipal fiber communication network that provides broadband services to 558 County, State, municipal, educational, and anchor institutions.

MoCoNet is the County’s residential broadband network that provides free 300/300 megabit per second (Mbps) Internet service for residents at affordable housing locations. Originally providing a symmetrical 100 Mbps service, the network was recently upgraded to 300 Mbps, and is currently available to low-income housing communities.

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Montgomery Connects Program Director Mitsuko Herrera tells ILSR that the county just received a $10 million grant from the State of Maryland to expand FiberNet and MoCoNet’s free 300 Mbps offering to 1,547 low-income and affordable housing units at seven properties operated by the County’s Housing Opportunities Commission.

The county’s also in the middle of upgrading its core fiber infrastructure to deliver significantly faster overall speeds.  

Timnath, Colorado officials have broken ground on a new $20 million fiber network that should dramatically expand affordable fiber access to the town of 7,100 residents.

Working in partnership with the city of Loveland’s Pulse Fiber, the project has been several years in the making, and – as with most of the successful municipal operations in Colorado – was fueled by ongoing public frustration with the speed, availability, and cost of monopoly-dominated regional broadband access.

“This project is about more than just Internet access,” Timnath Town Manager Aaron Adams said in a statement.

“It’s an investment in our future, ensuring that we have the infrastructure in place to support economic growth, attract new residents and businesses, and improve quality of life for everyone in Timnath.”

Last year the two cities signed an Inter-Governmental Agreement (IGA) greenlighting the plan to bring ubiquitous, affordable high-speed Internet access to Timnath. Under the arrangement, Tinmath is slated to receive 25 percent of the network’s gross income. That should equate to a 2 to 6 percent return on capital investment over 20 to 30 years, with the network fully paid off in 26 years.

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Timnath’s project was heavily funded by the town’s capital improvement funds, which were in turn bolstered by broadband grants received via the 2021 American Rescue Plan Act (ARPA).

Frustrated by years of substandard broadband service from regional telecom monopolies, Kendall County, Illinois residents have joined the growing chorus of Americans that are tackling the problem head on by building their own better, faster, more affordable fiber networks.

The Kendall County network, part of a public-private partnership (PPP or P3) with Pivot-Tech, is being funded by a tax-free revenue bond.

Kendall County officials tell ILSR that the full cost of the network, which will include private investment from Pivot-Tech, is expected to ultimately be $67 million, serving more than 13,000 locations county wide.

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The first phase of the network build will consist of a combination of fixed wireless and fiber last and middle middle connectivity, supported by $15 million in state broadband grants made possible by 2021 American Rescue Plan Act (ARPA) legislation. Construction is slated to begin this fall, and officials say the county will own the finished network.  

“The network is a combination of fiber and fixed wireless, with the goal to serve as many customers by fiber as possible,” Kendall County Administrator Christina Burns told ILSR. “The fixed wireless access count planned in phase one will be approximately 1,900. The remainder will be fiber to the premises.”

County officials are still finalizing the selection of a consumer-facing ISP.

“We have identified an ISP and are working through the details,” Burns said. “We do still plan for the network to be open access, hoping to bring more ISPs on in the future.”

Like so many communities we cover, the county’s foray into community broadband was forged by decades of local frustration with limited local broadband competition, high prices, and patchy service, which was painfully highlighted during COVID lockdowns.

As interest in municipal broadband continues to grow across the U.S., the American Association for Public Broadband (AAPB) has launched a mentorship program that will pair communities interested in building publicly-owned, locally controlled broadband networks with cities and towns that have successfully done so.

“We’re excited to match AAPB members with communities seeking to take control of their broadband futures,” AAPB Executive Director Gigi Sohn said in announcing the program.

“We want to demystify the process for those communities that want to ensure that everyone in their city or town has affordable access to everything that broadband enables, and we believe that our members that own their broadband infrastructure are the best people to do that.”

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While an increasing number of communities are exploring municipal broadband as a solution to local connectivity challenges after decades of frustration with the spotty, expensive service of big monopoly providers consistently ranked as among the most hated companies in America, local officials still must navigate the logistical, technical, financial, and political challenges associated with building and operating municipal networks.

Indio, California has been awarded a $9 million state grant the city will use to expand affordable broadband access. The grant award was made possible by California’s $2 billion Last Mile Federal Funding Account Grant Program (FFA), part of a broader $6 billion California “Broadband For All” initiative aimed at bridging the digital divide in the Golden State.

According to Indio officials and the now-finalized CPUC award, Indio – an incorporated city located in Riverside County and home to 92,000 residents – will receive $8.9 million to deliver gigabit-capable fiber to 479 unserved locations and an estimated 3,632 unserved local residents.

“We are still in the design phase and should release an RFP within the next couple of months for the actual build,” Indio Director of Information Technology Ian Cozens told ILSR.

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With 75 percent of the project’s initial target area classified as low-income, city leaders say residents can expect static pricing for at least ten years. The city will also ensure there’s a low-cost option for low-income families left adrift after House and Senate Republicans blocked the funding renewal of the federal Affordable Connectivity Program (ACP).

City officials, however, do not intend to stop there. The plan is to build a citywide fiber network, the full cost of which is estimated to be $35.2 million.